• Title/Summary/Keyword: Intelligent services

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A Study on the establishment of IoT management process in terms of business according to Paradigm Shift (패러다임 전환에 의한 기업 측면의 IoT 경영 프로세스 구축방안 연구)

  • Jeong, Min-Eui;Yu, Song-Jin
    • Journal of Intelligence and Information Systems
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    • v.21 no.2
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    • pp.151-171
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    • 2015
  • This study examined the concepts of the Internet of Things(IoT), the major issue and IoT trend in the domestic and international market. also reviewed the advent of IoT era which caused a 'Paradigm Shift'. This study proposed a solution for the appropriate corresponding strategy in terms of Enterprise. Global competition began in the IoT market. So, Businesses to be competitive and responsive, the government's efforts, as well as the efforts of companies themselves is needed. In particular, in order to cope with the dynamic environment appropriately, faster and more efficient strategy is required. In other words, proposed a management strategy that can respond the IoT competitive era on tipping point through the vision of paradigm shift. We forecasted and proposed the emergence of paradigm shift through a comparative analysis of past management paradigm and IoT management paradigm as follow; I) Knowledge & learning oriented management, II) Technology & innovation oriented management, III) Demand driven management, IV) Global collaboration management. The Knowledge & learning oriented management paradigm is expected to be a new management paradigm due to the development of IT technology development and information processing technology. In addition to the rapid development such as IT infrastructure and processing of data, storage, knowledge sharing and learning has become more important. Currently Hardware-oriented management paradigm will be changed to the software-oriented paradigm. In particular, the software and platform market is a key component of the IoT ecosystem, has been estimated to be led by Technology & innovation oriented management. In 2011, Gartner announced the concept of "Demand-Driven Value Networks(DDVN)", DDVN emphasizes value of the whole of the network. Therefore, Demand driven management paradigm is creating demand for advanced process, not the process corresponding to the demand simply. Global collaboration management paradigm create the value creation through the fusion between technology, between countries, between industries. In particular, cooperation between enterprises that has financial resources and brand power and venture companies with creative ideas and technical will generate positive synergies. Through this, The large enterprises and small companies that can be win-win environment would be built. Cope with the a paradigm shift and to establish a management strategy of Enterprise process, this study utilized the 'RTE cyclone model' which proposed by Gartner. RTE concept consists of three stages, Lead, Operate, Manage. The Lead stage is utilizing capital to strengthen the business competitiveness. This stages has the goal of linking to external stimuli strategy development, also Execute the business strategy of the company for capital and investment activities and environmental changes. Manege stage is to respond appropriately to threats and internalize the goals of the enterprise. Operate stage proceeds to action for increasing the efficiency of the services across the enterprise, also achieve the integration and simplification of the process, with real-time data capture. RTE(Real Time Enterprise) concept has the value for practical use with the management strategy. Appropriately applied in this study, we propose a 'IoT-RTE Cyclone model' which emphasizes the agility of the enterprise. In addition, based on the real-time monitoring, analysis, act through IT and IoT technology. 'IoT-RTE Cyclone model' that could integrate the business processes of the enterprise each sector and support the overall service. therefore the model be used as an effective response strategy for Enterprise. In particular, IoT-RTE Cyclone Model is to respond to external events, waste elements are removed according to the process is repeated. Therefore, it is possible to model the operation of the process more efficient and agile. This IoT-RTE Cyclone Model can be used as an effective response strategy of the enterprise in terms of IoT era of rapidly changing because it supports the overall service of the enterprise. When this model leverages a collaborative system among enterprises it expects breakthrough cost savings through competitiveness, global lead time, minimizing duplication.

Building a Korean Sentiment Lexicon Using Collective Intelligence (집단지성을 이용한 한글 감성어 사전 구축)

  • An, Jungkook;Kim, Hee-Woong
    • Journal of Intelligence and Information Systems
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    • v.21 no.2
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    • pp.49-67
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    • 2015
  • Recently, emerging the notion of big data and social media has led us to enter data's big bang. Social networking services are widely used by people around the world, and they have become a part of major communication tools for all ages. Over the last decade, as online social networking sites become increasingly popular, companies tend to focus on advanced social media analysis for their marketing strategies. In addition to social media analysis, companies are mainly concerned about propagating of negative opinions on social networking sites such as Facebook and Twitter, as well as e-commerce sites. The effect of online word of mouth (WOM) such as product rating, product review, and product recommendations is very influential, and negative opinions have significant impact on product sales. This trend has increased researchers' attention to a natural language processing, such as a sentiment analysis. A sentiment analysis, also refers to as an opinion mining, is a process of identifying the polarity of subjective information and has been applied to various research and practical fields. However, there are obstacles lies when Korean language (Hangul) is used in a natural language processing because it is an agglutinative language with rich morphology pose problems. Therefore, there is a lack of Korean natural language processing resources such as a sentiment lexicon, and this has resulted in significant limitations for researchers and practitioners who are considering sentiment analysis. Our study builds a Korean sentiment lexicon with collective intelligence, and provides API (Application Programming Interface) service to open and share a sentiment lexicon data with the public (www.openhangul.com). For the pre-processing, we have created a Korean lexicon database with over 517,178 words and classified them into sentiment and non-sentiment words. In order to classify them, we first identified stop words which often quite likely to play a negative role in sentiment analysis and excluded them from our sentiment scoring. In general, sentiment words are nouns, adjectives, verbs, adverbs as they have sentimental expressions such as positive, neutral, and negative. On the other hands, non-sentiment words are interjection, determiner, numeral, postposition, etc. as they generally have no sentimental expressions. To build a reliable sentiment lexicon, we have adopted a concept of collective intelligence as a model for crowdsourcing. In addition, a concept of folksonomy has been implemented in the process of taxonomy to help collective intelligence. In order to make up for an inherent weakness of folksonomy, we have adopted a majority rule by building a voting system. Participants, as voters were offered three voting options to choose from positivity, negativity, and neutrality, and the voting have been conducted on one of the largest social networking sites for college students in Korea. More than 35,000 votes have been made by college students in Korea, and we keep this voting system open by maintaining the project as a perpetual study. Besides, any change in the sentiment score of words can be an important observation because it enables us to keep track of temporal changes in Korean language as a natural language. Lastly, our study offers a RESTful, JSON based API service through a web platform to make easier support for users such as researchers, companies, and developers. Finally, our study makes important contributions to both research and practice. In terms of research, our Korean sentiment lexicon plays an important role as a resource for Korean natural language processing. In terms of practice, practitioners such as managers and marketers can implement sentiment analysis effectively by using Korean sentiment lexicon we built. Moreover, our study sheds new light on the value of folksonomy by combining collective intelligence, and we also expect to give a new direction and a new start to the development of Korean natural language processing.

The Effects of Customer Product Review on Social Presence in Personalized Recommender Systems (개인화 추천시스템에서 고객 제품 리뷰가 사회적 실재감에 미치는 영향)

  • Choi, Jae-Won;Lee, Hong-Joo
    • Journal of Intelligence and Information Systems
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    • v.17 no.3
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    • pp.115-130
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    • 2011
  • Many online stores bring features that can build trust in their customers. More so, the number of products or content services on online stores has been increasing rapidly. Hence, personalization on online stores is considered to be an important technology to companies and customers. Recommender systems that provide favorable products and customer product reviews to users are the most commonly used features in this purpose. There are many studies to that investigated the relationship between social presence as an antecedent of trust and provision of recommender systems or customer product reviews. Many online stores have made efforts to increase perceived social presence of their customers through customer reviews, recommender systems, and analyzing associations among products. Primarily because social presence can increase customer trust or reuse intention for online stores. However, there were few studies that investigated the interactions between recommendation type, product type and provision of customer product reviews on social presence. Therefore, one of the purposes of this study is to identify the effects of personalized recommender systems and compare the role of customer reviews with product types. This study performed an experiment to see these interactions. Experimental web pages were developed with $2{\times}2$ factorial setting based on how to provide social presence to users with customer reviews and two product types such as hedonic and utilitarian. The hedonic type was a ringtone chosen from Nate.com while the utilitarian was a TOEIC study aid book selected from Yes24.com. To conduct the experiment, web based experiments were conducted for the participants who have been shopping on the online stores. Participants were a total of 240 and 30% of the participants had the chance of getting the presents. We found out that social presence increased for hedonic products when personalized recommendations were given compared to non.personalized recommendations. Although providing customer reviews for two product types did not significantly increase social presence, provision of customer product reviews for hedonic (ringtone) increased perceived social presence. Otherwise, provision of customer product reviews could not increase social presence when the systems recommend utilitarian products (TOEIC study.aid books). Therefore, it appears that the effects of increasing perceived social presence with customer reviews have a difference for product types. In short, the role of customer reviews could be different based on which product types were considered by customers when they are making a decision related to purchasing on the online stores. Additionally, there were no differences for increasing perceived social presence when providing customer reviews. Our participants might have focused on how recommendations had been provided and what products were recommended because our developed systems were providing recommendations after participants rating their preferences. Thus, the effects of customer reviews could appear more clearly if our participants had actual purchase opportunity for the recommendations. Personalized recommender systems can increase social presence of customers more than nonpersonalized recommender systems by using user preference. Online stores could find out how they can increase perceived social presence and satisfaction of their customers when customers want to find the proper products with recommender systems and customer reviews. In addition, the role of customer reviews of the personalized recommendations can be different based on types of the recommended products. Even if this study conducted two product types such as hedonic and utilitarian, the results revealed that customer reviews for hedonic increased social presence of customers more than customer reviews for utilitarian. Thus, online stores need to consider the role of providing customer reviews with highly personalized information based on their product types when they develop the personalized recommender systems.

Social Network Analysis for the Effective Adoption of Recommender Systems (추천시스템의 효과적 도입을 위한 소셜네트워크 분석)

  • Park, Jong-Hak;Cho, Yoon-Ho
    • Journal of Intelligence and Information Systems
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    • v.17 no.4
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    • pp.305-316
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    • 2011
  • Recommender system is the system which, by using automated information filtering technology, recommends products or services to the customers who are likely to be interested in. Those systems are widely used in many different Web retailers such as Amazon.com, Netfix.com, and CDNow.com. Various recommender systems have been developed. Among them, Collaborative Filtering (CF) has been known as the most successful and commonly used approach. CF identifies customers whose tastes are similar to those of a given customer, and recommends items those customers have liked in the past. Numerous CF algorithms have been developed to increase the performance of recommender systems. However, the relative performances of CF algorithms are known to be domain and data dependent. It is very time-consuming and expensive to implement and launce a CF recommender system, and also the system unsuited for the given domain provides customers with poor quality recommendations that make them easily annoyed. Therefore, predicting in advance whether the performance of CF recommender system is acceptable or not is practically important and needed. In this study, we propose a decision making guideline which helps decide whether CF is adoptable for a given application with certain transaction data characteristics. Several previous studies reported that sparsity, gray sheep, cold-start, coverage, and serendipity could affect the performance of CF, but the theoretical and empirical justification of such factors is lacking. Recently there are many studies paying attention to Social Network Analysis (SNA) as a method to analyze social relationships among people. SNA is a method to measure and visualize the linkage structure and status focusing on interaction among objects within communication group. CF analyzes the similarity among previous ratings or purchases of each customer, finds the relationships among the customers who have similarities, and then uses the relationships for recommendations. Thus CF can be modeled as a social network in which customers are nodes and purchase relationships between customers are links. Under the assumption that SNA could facilitate an exploration of the topological properties of the network structure that are implicit in transaction data for CF recommendations, we focus on density, clustering coefficient, and centralization which are ones of the most commonly used measures to capture topological properties of the social network structure. While network density, expressed as a proportion of the maximum possible number of links, captures the density of the whole network, the clustering coefficient captures the degree to which the overall network contains localized pockets of dense connectivity. Centralization reflects the extent to which connections are concentrated in a small number of nodes rather than distributed equally among all nodes. We explore how these SNA measures affect the performance of CF performance and how they interact to each other. Our experiments used sales transaction data from H department store, one of the well?known department stores in Korea. Total 396 data set were sampled to construct various types of social networks. The dependant variable measuring process consists of three steps; analysis of customer similarities, construction of a social network, and analysis of social network patterns. We used UCINET 6.0 for SNA. The experiments conducted the 3-way ANOVA which employs three SNA measures as dependant variables, and the recommendation accuracy measured by F1-measure as an independent variable. The experiments report that 1) each of three SNA measures affects the recommendation accuracy, 2) the density's effect to the performance overrides those of clustering coefficient and centralization (i.e., CF adoption is not a good decision if the density is low), and 3) however though the density is low, the performance of CF is comparatively good when the clustering coefficient is low. We expect that these experiment results help firms decide whether CF recommender system is adoptable for their business domain with certain transaction data characteristics.

Mobile Contents Transformation System Research for Personalization Service (개인화 서비스를 위한 모바일 콘텐츠 변환 시스템 연구)

  • Bae, Jong-Hwan;Cho, Young-Hee;Lee, Jung-Jae;Kim, Nam-Jin
    • Journal of Intelligence and Information Systems
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    • v.17 no.2
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    • pp.119-128
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    • 2011
  • The Sensor technology and portable device capability able to collect recent user information and the information about the surrounding environment haven been highly developed. A user can be made use of various contents and the option is also extending with this technology development. In particular, the initial portable device had simply a call function, but now that has evolved into 'the 4th screen' which including movie, television, PC ability. also, in the past, a portable device to provided only the services of a SMS, in recent years, it provided to interactive video service, and it include technology which providing various contents. Also, it is rising as media which leading the consumption of contents, because it can be used anytime, anywhere. However, the contents available for the nature of user's handheld devices are limited. because it is very difficult for making the contents separately according to various device specification. To find a solution to this problem, the study on one contents from several device has been progressing. The contents conversion technology making use of the profile of device out of this study comes to the force and profile study has been progressing for this. Furthermore, Demand for a user is also increased and the study on the technology collecting, analyzing demands has been making active progress. And what is more, Grasping user's demands by making use of this technology and the study on the technology analyzing, providing contents has been making active progress as well. First of all, there is a method making good use of ZigBee, Bluetooth technology about the sensor for gathering user's information. ZigBee uses low-power digital radio for wireless headphone, wireless communication network, and being utilized for smart energy, automatic home system, wireless communication application and wireless sensor application. Bluetooth, as industry standards of PAN(Personal Area Networks), is being made of use of low power wireless device for the technology supporting data transmission such as drawing file, video file among Bluetooth device. With analyzing the collected information making use of this technology, it utilizes personalized service based on network knowledge developed by ETRI to service contents tailor-made for a user. Now that personalized service builds up network knowledge about user's various environments, the technology provides context friendly service constructed dynamically on the basis of this. The contents to service dynamically like this offer the contents that it converses with utilizing device profile to working well. Therefore, this paper suggests the system as follow. It collects the information, for example of user's sensitivity, context and location by using sensor technology, and generates the profile as a means of collected information as sensor. It collects the user's propensity to the information by user's input and event and generates profile in the same way besides the gathered information by sensor. Device transmits a generated profile and the profile about a device specification to proxy server. And proxy server transmits a profile to each profile management server. It analyzes profile in proxy server so that it selects the contents user demand and requests in contents server. Contents server receives a profile of user portable device from device profile server and converses the contents by using this. Original source code of contents convert into XML code using the device profile and XML code convert into source code available in user portable device. Thus, contents conversion process is terminated and user friendly system is completed as the user transmits optimal contents for user portable device.

Research about a structure system of the bus information system which is applied to the bus stop - Around a problem and preference of Pusan bus information system investigation - (버스정류장에 적용된 버스정보시스템의 구성 체계에 관한 연구 - 부산시 버스정보시스템의 문제점 및 선호도 조사를 중심으로 -)

  • Cha Min-Jun;Hong Kwan-Seon
    • Archives of design research
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    • v.19 no.4 s.66
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    • pp.61-70
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    • 2006
  • The functions and roles in the various fields of modern society are changing into the unified and multiplex structure, which is simultaneous and virtual communication environments beyond physical space and time, by the digital IT technology. The urban traffic system is also being intellectualized in order to solve urban traffic problems and convenient services by using digital IT technology. The bus, which is the one of the most common public transportation, are suffering in the decrease of bus service quality and the bus passengers rate because of the development of other public transportation systems such as the subway and electric railway and by rapidly increasing private cars. By recognizing these problems, many domestic and overseas cities are promoting to introduce the Bus Information System (BIS) to improve service quality of buses through the intelligent traffic system. According to the construction of this new information system called the Bus Information System (BIS), the new bus stop configuration system and design plans are being required to solve the existing bus stop information system. Therefore, this research was conducted to suggest an effective BIS configuration system plan and synthetic design goals based on the investigation the problems of the information system and the BIS configuration system for Busan city. Also, this research are conducted the below actions as follows: First, the literature survey was conducted, such as theoretical documents on the bus stop and the Bus Information System(BIS), Also, the design trend of the BIS was examined through domestic and overseas BIS cases studies. Scondly, the problems related to the information system in Busan city bus stops were investigated to investigate the present state and problems of the Bus Information System (BIS). Finally, as a result of this research, the effective BIS configuration system plan and design approach methods of bus stops were proposed for by Busan city based on the above investigation results.

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Personalized Exhibition Booth Recommendation Methodology Using Sequential Association Rule (순차 연관 규칙을 이용한 개인화된 전시 부스 추천 방법)

  • Moon, Hyun-Sil;Jung, Min-Kyu;Kim, Jae-Kyeong;Kim, Hyea-Kyeong
    • Journal of Intelligence and Information Systems
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    • v.16 no.4
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    • pp.195-211
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    • 2010
  • An exhibition is defined as market events for specific duration to present exhibitors' main product range to either business or private visitors, and it also plays a key role as effective marketing channels. Especially, as the effect of the opinions of the visitors after the exhibition impacts directly on sales or the image of companies, exhibition organizers must consider various needs of visitors. To meet needs of visitors, ubiquitous technologies have been applied in some exhibitions. However, despite of the development of the ubiquitous technologies, their services cannot always reflect visitors' preferences as they only generate information when visitors request. As a result, they have reached their limit to meet needs of visitors, which consequently might lead them to loss of marketing opportunity. Recommendation systems can be the right type to overcome these limitations. They can recommend the booths to coincide with visitors' preferences, so that they help visitors who are in difficulty for choices in exhibition environment. One of the most successful and widely used technologies for building recommender systems is called Collaborative Filtering. Traditional recommender systems, however, only use neighbors' evaluations or behaviors for a personalized prediction. Therefore, they can not reflect visitors' dynamic preference, and also lack of accuracy in exhibition environment. Although there is much useful information to infer visitors' preference in ubiquitous environment (e.g., visitors' current location, booth visit path, and so on), they use only limited information for recommendation. In this study, we propose a booth recommendation methodology using Sequential Association Rule which considers the sequence of visiting. Recent studies of Sequential Association Rule use the constraints to improve the performance. However, since traditional Sequential Association Rule considers the whole rules to recommendation, they have a scalability problem when they are adapted to a large exhibition scale. To solve this problem, our methodology composes the confidence database before recommendation process. To compose the confidence database, we first search preceding rules which have the frequency above threshold. Next, we compute the confidences of each preceding rules to each booth which is not contained in preceding rules. Therefore, the confidence database has two kinds of information which are preceding rules and their confidence to each booth. In recommendation process, we just generate preceding rules of the target visitors based on the records of the visits, and recommend booths according to the confidence database. Throughout these steps, we expect reduction of time spent on recommendation process. To evaluate proposed methodology, we use real booth visit records which are collected by RFID technology in IT exhibition. Booth visit records also contain the visit sequence of each visitor. We compare the performance of proposed methodology with traditional Collaborative Filtering system. As a result, our proposed methodology generally shows higher performance than traditional Collaborative Filtering. We can also see some features of it in experimental results. First, it shows the highest performance at one booth recommendation. It detects preceding rules with some portions of visitors. Therefore, if there is a visitor who moved with very a different pattern compared to the whole visitors, it cannot give a correct recommendation for him/her even though we increase the number of recommendation. Trained by the whole visitors, it cannot correctly give recommendation to visitors who have a unique path. Second, the performance of general recommendation systems increase as time expands. However, our methodology shows higher performance with limited information like one or two time periods. Therefore, not only can it recommend even if there is not much information of the target visitors' booth visit records, but also it uses only small amount of information in recommendation process. We expect that it can give real?time recommendations in exhibition environment. Overall, our methodology shows higher performance ability than traditional Collaborative Filtering systems, we expect it could be applied in booth recommendation system to satisfy visitors in exhibition environment.

User-Perspective Issue Clustering Using Multi-Layered Two-Mode Network Analysis (다계층 이원 네트워크를 활용한 사용자 관점의 이슈 클러스터링)

  • Kim, Jieun;Kim, Namgyu;Cho, Yoonho
    • Journal of Intelligence and Information Systems
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    • v.20 no.2
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    • pp.93-107
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    • 2014
  • In this paper, we report what we have observed with regard to user-perspective issue clustering based on multi-layered two-mode network analysis. This work is significant in the context of data collection by companies about customer needs. Most companies have failed to uncover such needs for products or services properly in terms of demographic data such as age, income levels, and purchase history. Because of excessive reliance on limited internal data, most recommendation systems do not provide decision makers with appropriate business information for current business circumstances. However, part of the problem is the increasing regulation of personal data gathering and privacy. This makes demographic or transaction data collection more difficult, and is a significant hurdle for traditional recommendation approaches because these systems demand a great deal of personal data or transaction logs. Our motivation for presenting this paper to academia is our strong belief, and evidence, that most customers' requirements for products can be effectively and efficiently analyzed from unstructured textual data such as Internet news text. In order to derive users' requirements from textual data obtained online, the proposed approach in this paper attempts to construct double two-mode networks, such as a user-news network and news-issue network, and to integrate these into one quasi-network as the input for issue clustering. One of the contributions of this research is the development of a methodology utilizing enormous amounts of unstructured textual data for user-oriented issue clustering by leveraging existing text mining and social network analysis. In order to build multi-layered two-mode networks of news logs, we need some tools such as text mining and topic analysis. We used not only SAS Enterprise Miner 12.1, which provides a text miner module and cluster module for textual data analysis, but also NetMiner 4 for network visualization and analysis. Our approach for user-perspective issue clustering is composed of six main phases: crawling, topic analysis, access pattern analysis, network merging, network conversion, and clustering. In the first phase, we collect visit logs for news sites by crawler. After gathering unstructured news article data, the topic analysis phase extracts issues from each news article in order to build an article-news network. For simplicity, 100 topics are extracted from 13,652 articles. In the third phase, a user-article network is constructed with access patterns derived from web transaction logs. The double two-mode networks are then merged into a quasi-network of user-issue. Finally, in the user-oriented issue-clustering phase, we classify issues through structural equivalence, and compare these with the clustering results from statistical tools and network analysis. An experiment with a large dataset was performed to build a multi-layer two-mode network. After that, we compared the results of issue clustering from SAS with that of network analysis. The experimental dataset was from a web site ranking site, and the biggest portal site in Korea. The sample dataset contains 150 million transaction logs and 13,652 news articles of 5,000 panels over one year. User-article and article-issue networks are constructed and merged into a user-issue quasi-network using Netminer. Our issue-clustering results applied the Partitioning Around Medoids (PAM) algorithm and Multidimensional Scaling (MDS), and are consistent with the results from SAS clustering. In spite of extensive efforts to provide user information with recommendation systems, most projects are successful only when companies have sufficient data about users and transactions. Our proposed methodology, user-perspective issue clustering, can provide practical support to decision-making in companies because it enhances user-related data from unstructured textual data. To overcome the problem of insufficient data from traditional approaches, our methodology infers customers' real interests by utilizing web transaction logs. In addition, we suggest topic analysis and issue clustering as a practical means of issue identification.

Attention to the Internet: The Impact of Active Information Search on Investment Decisions (인터넷 주의효과: 능동적 정보 검색이 투자 결정에 미치는 영향에 관한 연구)

  • Chang, Young Bong;Kwon, YoungOk;Cho, Wooje
    • Journal of Intelligence and Information Systems
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    • v.21 no.3
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    • pp.117-129
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    • 2015
  • As the Internet becomes ubiquitous, a large volume of information is posted on the Internet with exponential growth every day. Accordingly, it is not unusual that investors in stock markets gather and compile firm-specific or market-wide information through online searches. Importantly, it becomes easier for investors to acquire value-relevant information for their investment decision with the help of powerful search tools on the Internet. Our study examines whether or not the Internet helps investors assess a firm's value better by using firm-level data over long periods spanning from January 2004 to December 2013. To this end, we construct weekly-based search volume for information technology (IT) services firms on the Internet. We limit our focus to IT firms since they are often equipped with intangible assets and relatively less recognized to the public which makes them hard-to measure. To obtain the information on those firms, investors are more likely to consult the Internet and use the information to appreciate the firms more accurately and eventually improve their investment decisions. Prior studies have shown that changes in search volumes can reflect the various aspects of the complex human behaviors and forecast near-term values of economic indicators, including automobile sales, unemployment claims, and etc. Moreover, search volume of firm names or stock ticker symbols has been used as a direct proxy of individual investors' attention in financial markets since, different from indirect measures such as turnover and extreme returns, they can reveal and quantify the interest of investors in an objective way. Following this line of research, this study aims to gauge whether the information retrieved from the Internet is value relevant in assessing a firm. We also use search volume for analysis but, distinguished from prior studies, explore its impact on return comovements with market returns. Given that a firm's returns tend to comove with market returns excessively when investors are less informed about the firm, we empirically test the value of information by examining the association between Internet searches and the extent to which a firm's returns comove. Our results show that Internet searches are negatively associated with return comovements as expected. When sample is split by the size of firms, the impact of Internet searches on return comovements is shown to be greater for large firms than small ones. Interestingly, we find a greater impact of Internet searches on return comovements for years from 2009 to 2013 than earlier years possibly due to more aggressive and informative exploit of Internet searches in obtaining financial information. We also complement our analyses by examining the association between return volatility and Internet search volumes. If Internet searches capture investors' attention associated with a change in firm-specific fundamentals such as new product releases, stock splits and so on, a firm's return volatility is likely to increase while search results can provide value-relevant information to investors. Our results suggest that in general, an increase in the volume of Internet searches is not positively associated with return volatility. However, we find a positive association between Internet searches and return volatility when the sample is limited to larger firms. A stronger result from larger firms implies that investors still pay less attention to the information obtained from Internet searches for small firms while the information is value relevant in assessing stock values. However, we do find any systematic differences in the magnitude of Internet searches impact on return volatility by time periods. Taken together, our results shed new light on the value of information searched from the Internet in assessing stock values. Given the informational role of the Internet in stock markets, we believe the results would guide investors to exploit Internet search tools to be better informed, as a result improving their investment decisions.

A Match-Making System Considering Symmetrical Preferences of Matching Partners (상호 대칭적 만족성을 고려한 온라인 데이트시스템)

  • Park, Yoon-Joo
    • Journal of Intelligence and Information Systems
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    • v.18 no.2
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    • pp.177-192
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    • 2012
  • This is a study of match-making systems that considers the mutual satisfaction of matching partners. Recently, recommendation systems have been applied to people recommendation, such as recommending new friends, employees, or dating partners. One of the prominent domain areas is match-making systems that recommend suitable dating partners to customers. A match-making system, however, is different from a product recommender system. First, a match-making system needs to satisfy the recommended partners as well as the customer, whereas a product recommender system only needs to satisfy the customer. Second, match-making systems need to include as many participants in a matching pool as possible for their recommendation results, even with unpopular customers. In other words, recommendations should not be focused only on a limited number of popular people; unpopular people should also be listed on someone else's matching results. In product recommender systems, it is acceptable to recommend the same popular items to many customers, since these items can easily be additionally supplied. However, in match-making systems, there are only a few popular people, and they may become overburdened with too many recommendations. Also, a successful match could cause a customer to drop out of the matching pool. Thus, match-making systems should provide recommendation services equally to all customers without favoring popular customers. The suggested match-making system, called Mutually Beneficial Matching (MBM), considers the reciprocal satisfaction of both the customer and the matched partner and also considers the number of customers who are excluded in the matching. A brief outline of the MBM method is as follows: First, it collects a customer's profile information, his/her preferable dating partner's profile information and the weights that he/she considers important when selecting dating partners. Then, it calculates the preference score of a customer to certain potential dating partners on the basis of the difference between them. The preference score of a certain partner to a customer is also calculated in this way. After that, the mutual preference score is produced by the two preference values calculated in the previous step using the proposed formula in this study. The proposed formula reflects the symmetry of preferences as well as their quantities. Finally, the MBM method recommends the top N partners having high mutual preference scores to a customer. The prototype of the suggested MBM system is implemented by JAVA and applied to an artificial dataset that is based on real survey results from major match-making companies in Korea. The results of the MBM method are compared with those of the other two conventional methods: Preference-Based Matching (PBM), which only considers a customer's preferences, and Arithmetic Mean-Based Matching (AMM), which considers the preferences of both the customer and the partner (although it does not reflect their symmetry in the matching results). We perform the comparisons in terms of criteria such as average preference of the matching partners, average symmetry, and the number of people who are excluded from the matching results by changing the number of recommendations to 5, 10, 15, 20, and 25. The results show that in many cases, the suggested MBM method produces average preferences and symmetries that are significantly higher than those of the PBM and AMM methods. Moreover, in every case, MBM produces a smaller pool of excluded people than those of the PBM method.